Print This Article Slom Slams Abercrombie Budget; Says Lawmakers May Hike General Excise Tax
BY GREG WILES
The Hawaii State Senate’s lone Republican is blasting Gov. Neil Abercrombie’s proposed budget, saying the proposed two-year financial plan breaks records for its size and proposes an increase when other states are looking for ways to cut back.
“What we got was a tremendously bloated, in my humble opinion, budget that we can neither afford nor effectuate,” said Slom in his weekly minority press briefing.
“It is based on tax increases, fee increases, a reduction in some services and a very vague 5 percent take back of public service employees’ salaries.”
Abercrombie made public his financial roadmap this week, calling for an additional an $728.6 million in spending compared to the budget he had inherited from former Gov. Linda Lingle. The plan involves a call for shared sacrifice and restructures spending on government retiree pensions and healthcare, reducing help for low-income families and cuts to public worker pay.
The budget includes measures that already have been introduced by Abercrombie such as a tax on certain pensions, repeal of a deduction for state taxes, increasing the state alcohol tax and a new tax on sodas.
The plan would also slice spending for Temporary Assistance to Needy Families, reduce Medicaid Service and cut state worker pay that has to be bargained for in public employee contract talks.
Abercrombie also is proposing hiring 236 people to restore some government functions that he says have been pruned back to the point where they no longer are effective. This includes items such as agricultural inspection and rebuilding the state’s occupational safety and health program.
“The time for delay has run out,” said Abercrombie on Monday in presenting a picture of a state that needs to change its finances or face deeper problems with medical spending, pension funding and ballooning public worker retiree healthcare costs.
“I have said previously and I’m saying it again today – everybody has to give a little.”
But Slom said was critical of the proposed budget increase, saying it doesn’t make sense given the slow economic recovery the state is experiencing.
“For the state to go ahead an increase the budget like no other state is doing at this time is frankly quite bizarre and untenable,” said Slom, who also contributes commentaries to Hawaii Reporter.
He said he believed Abercrombie’s pension tax proposal wasn’t going to pass and that the Governor may have to accept a modified proposal when it comes to doing away with Medicaid Part B reimbursements for public retirees.
He said Abercrombie, a Democrat who’s held city, state and Congressional elected positions, isn’t breaking from a history of increasing spending, taxes and the size of government.
“A lot of these things will probably be dismissed and that sets up the issue of the Trojan Horse, and that of course is the General Excise Tax,” Slom said.
“I see that as the overall plan as some of these tax increases and proposals fall by the wayside. They’ll throw up their hands and say, ‘Well, we promised no General Excise Tax, but doggone it, we’ve got to have that General Excise Tax Increase.”
He said he believes serious debate will take place on hiking the 4.0 percent tax for the Neighbor Islands and is 4.0 and a 0.5 percent surcharge for rail funding on Oahu. Someone will probably suggest a 1 percent increase that will generate much criticism before emerging as a 0.5 percentage point increase.
“I think that’s what’s going to emerge out of all of this,” Slom said.
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Slom is right, of course, but he is but one lone voice in the wilderness. Our fellow citizens voted in this reckless Obama clone and we must all now pay the price for their ignorance.
It would be nice to think that Neal would cut the cost of government. LOL is not an adequate response to this notion. However, if taxes really must go up, increasing taxes on consumption make more sense than other taxes, including those on pension income, because they hurt productivity less. Hence, increasing the GET makes the most sense. And voting Neal out as soon as possible is what needs to happen next.
If this State cannot get along with less like the rest of us, why doesn’t the governor just confiscate ALL of our money and give us a weekly allowance? Might be faster and easier to steal all of our income instead of this charade.
Actually, the best thing we could do is have the Legislature meet every other year. We could save a bunch and also avoid all of the problems when they do meet. They introduce thousands of bills every year and just add to the confusion. Moses had 10 commandments-now we have millions of laws-most of them to fix the unnecessary laws that legislatures pass every year.
Gov. Abe is as far from Abe Lincoln as is possible to be. The majority of voters hired him, so now it is time to see who they really hired. The matter would be even worse were it not for R-Slom who in part represents small businesses in Hawaii. Perhaps some Democrat elected officials know some basic economics, and can see the "writing on the wall", so to speak. Oh, forgive me for the politically incorrect biblical analogy.
If the modern Abe taxes sodas, i won't buy sodas. Alcohol tax - i won't drink it. Tax cars? I'll drive just below speed limit and block the "fast" lane. Hired new State agricultural inspectors? I'll take vitamins instead of veggies. Raise The Excise Tax? I will campaign against the Rail, a grandiose concept at a bad time, in Gov. Abe's own words.